An empirical study of the determinants of UK oil and gas voluntary disclosures

Stuart McChlery, Reza Kouhy, Catriona Paisey, Khaled Hussainey

    Research output: Contribution to journalArticle

    1 Citation (Scopus)

    Abstract

    Significant oil and gas firm market value is derived from their physical reserve quantum, assets which are not recorded on their statements of financial position. This article provides empirical evidence regarding voluntary disclosure of such reserves in line with the previously unresearched UK sector with regard to its unique reporting guidelines. The study considers both the reporting of the reserve quantum and the quality of that reporting. This article seeks to inform the International Accounting Standards Board’s (IASB’s) on-going consideration of mineral resource reporting. Listed companies are considered to evidence forms of reserve disclosure with a logistical regression approach applied to measure determinants of reporting. The risk associated with mineral reporting reserves is hypothesized as the key disclosure driver whilst controlling other relevant variables. The majority of firms disclosed reserve quantities in some form but only a minority disclosed in line with recommended practice, disclosure quality being more variable between companies. The findings indicate that a voluntary disclosure approach is ineffective, partially explained by agency related behaviour. Risk, proxied by the stage of production, drives reserve disclosure showing that producer firms are more likely to disclose reserve quantum balances and of a significantly higher quality.
    Original languageEnglish
    Pages (from-to)5917-5931
    Number of pages15
    JournalApplied Economics
    Volume47
    Issue number54
    DOIs
    Publication statusPublished - 26 Jun 2015

    Fingerprint

    Voluntary disclosure
    Gas
    Oil
    Empirical study
    Disclosure
    Listed companies
    Minerals
    International Accounting Standards Board
    Minorities
    Disclosure quality
    Market value
    Assets
    Empirical evidence
    Mineral resources

    Cite this

    McChlery, Stuart ; Kouhy, Reza ; Paisey, Catriona ; Hussainey, Khaled. / An empirical study of the determinants of UK oil and gas voluntary disclosures. In: Applied Economics. 2015 ; Vol. 47, No. 54. pp. 5917-5931.
    @article{d6b757b90ab74f2ab885906448b28f5b,
    title = "An empirical study of the determinants of UK oil and gas voluntary disclosures",
    abstract = "Significant oil and gas firm market value is derived from their physical reserve quantum, assets which are not recorded on their statements of financial position. This article provides empirical evidence regarding voluntary disclosure of such reserves in line with the previously unresearched UK sector with regard to its unique reporting guidelines. The study considers both the reporting of the reserve quantum and the quality of that reporting. This article seeks to inform the International Accounting Standards Board’s (IASB’s) on-going consideration of mineral resource reporting. Listed companies are considered to evidence forms of reserve disclosure with a logistical regression approach applied to measure determinants of reporting. The risk associated with mineral reporting reserves is hypothesized as the key disclosure driver whilst controlling other relevant variables. The majority of firms disclosed reserve quantities in some form but only a minority disclosed in line with recommended practice, disclosure quality being more variable between companies. The findings indicate that a voluntary disclosure approach is ineffective, partially explained by agency related behaviour. Risk, proxied by the stage of production, drives reserve disclosure showing that producer firms are more likely to disclose reserve quantum balances and of a significantly higher quality.",
    author = "Stuart McChlery and Reza Kouhy and Catriona Paisey and Khaled Hussainey",
    year = "2015",
    month = "6",
    day = "26",
    doi = "10.1080/00036846.2015.1061641",
    language = "English",
    volume = "47",
    pages = "5917--5931",
    journal = "Applied Economics",
    issn = "0003-6846",
    publisher = "Taylor and Francis Ltd.",
    number = "54",

    }

    An empirical study of the determinants of UK oil and gas voluntary disclosures. / McChlery, Stuart; Kouhy, Reza; Paisey, Catriona; Hussainey, Khaled.

    In: Applied Economics, Vol. 47, No. 54, 26.06.2015, p. 5917-5931.

    Research output: Contribution to journalArticle

    TY - JOUR

    T1 - An empirical study of the determinants of UK oil and gas voluntary disclosures

    AU - McChlery, Stuart

    AU - Kouhy, Reza

    AU - Paisey, Catriona

    AU - Hussainey, Khaled

    PY - 2015/6/26

    Y1 - 2015/6/26

    N2 - Significant oil and gas firm market value is derived from their physical reserve quantum, assets which are not recorded on their statements of financial position. This article provides empirical evidence regarding voluntary disclosure of such reserves in line with the previously unresearched UK sector with regard to its unique reporting guidelines. The study considers both the reporting of the reserve quantum and the quality of that reporting. This article seeks to inform the International Accounting Standards Board’s (IASB’s) on-going consideration of mineral resource reporting. Listed companies are considered to evidence forms of reserve disclosure with a logistical regression approach applied to measure determinants of reporting. The risk associated with mineral reporting reserves is hypothesized as the key disclosure driver whilst controlling other relevant variables. The majority of firms disclosed reserve quantities in some form but only a minority disclosed in line with recommended practice, disclosure quality being more variable between companies. The findings indicate that a voluntary disclosure approach is ineffective, partially explained by agency related behaviour. Risk, proxied by the stage of production, drives reserve disclosure showing that producer firms are more likely to disclose reserve quantum balances and of a significantly higher quality.

    AB - Significant oil and gas firm market value is derived from their physical reserve quantum, assets which are not recorded on their statements of financial position. This article provides empirical evidence regarding voluntary disclosure of such reserves in line with the previously unresearched UK sector with regard to its unique reporting guidelines. The study considers both the reporting of the reserve quantum and the quality of that reporting. This article seeks to inform the International Accounting Standards Board’s (IASB’s) on-going consideration of mineral resource reporting. Listed companies are considered to evidence forms of reserve disclosure with a logistical regression approach applied to measure determinants of reporting. The risk associated with mineral reporting reserves is hypothesized as the key disclosure driver whilst controlling other relevant variables. The majority of firms disclosed reserve quantities in some form but only a minority disclosed in line with recommended practice, disclosure quality being more variable between companies. The findings indicate that a voluntary disclosure approach is ineffective, partially explained by agency related behaviour. Risk, proxied by the stage of production, drives reserve disclosure showing that producer firms are more likely to disclose reserve quantum balances and of a significantly higher quality.

    U2 - 10.1080/00036846.2015.1061641

    DO - 10.1080/00036846.2015.1061641

    M3 - Article

    VL - 47

    SP - 5917

    EP - 5931

    JO - Applied Economics

    JF - Applied Economics

    SN - 0003-6846

    IS - 54

    ER -